The Department of Labor issued the final overtime rule, raising the minimum salary threshold for overtime eligibility to $35,568 ($684 per week), with no changes to the duties test, effective January 1, 2020. Any employee earning less than the new threshold will now automatically be classified as non-exempt, and will be eligible to earn overtime. Non-discretionary bonuses and incentives paid on an annual or more frequent basis can be used to satisfy up to 10% of the standard salary level. Human Resources should review salary levels of positions currently classified as exempt who will now fall below the threshold, and conduct the duties test to confirm if the position qualifies for exemption under the duties test. Thereafter, a cost analysis should be conducted to determine the impact of raising salaries in order to maintain exemption status versus reclassifying those positions as non-exempt and paying overtime.  Finally, communications need to be drafted to inform impacted employees about changes in either exemption classification and/or salary adjustments, and the effect this change may have on any policies, such as time off, merit increases, bonus opportunities, etc.